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Ramalingam Kalirajan |7451 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Apr 09, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more

Question by dinesh on May 08, 2023Hindi

Money

PLZ SUGGEST ME FOR SIP 5000 PER MONTH FOR 15 YEAR, I LOOKING TOF UTI NIFTY50 INDEX OR ICICI PRO USA INDEX OR AXIS NASDAQ100 WHICH IS BETTER

Ans: Considering your SIP duration of 15 years, assess each option's historical performance, expense ratios, and tracking error against its benchmark. Evaluate factors such as fund size, fund manager's expertise, and volatility. Choose an index fund with a proven track record of closely tracking its respective index and delivering consistent returns over the long term. Additionally, consider factors like fund management style and your risk tolerance before making a decision. Regularly monitor your investment's performance and review your portfolio to ensure it remains aligned with your financial goals and risk profile.

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.

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Question by dinesh - May 08, 2023Hindi

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I WANT OT START SIP IN NASDAQ100 AND ICICI US BLUE AND UTINIFTY50 INDEX FOR 5000/- PM IS GOOD

Ans: As per your choices, your major exposure will be in US equities. As per my understanding Indian equities will grow faster than US equities so I would suggest you to select funds which have Indian equity exposure rather than US equity

Ramalingam Kalirajan |7451 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 30, 2024

Question by Sameer - Nov 19, 2023Hindi

Money

I am planning to invest 10,000 per month as SIP, i already invest 2000 per month in Mirae Asset Large Cap, SBI Small cap & Parag Parikh Flexi Cap

Ans: Portfolio Expansion Strategy

Expanding your investment portfolio with an additional SIP of Rs 10,000 per month is a prudent step towards long-term wealth creation. Let's evaluate how to best allocate this amount.

Current Portfolio Review

Your existing SIP investments in Mirae Asset Large Cap, SBI Small Cap, and Parag Parikh Flexi Cap demonstrate a balanced approach across different market segments. This diversification helps mitigate risk and capture growth opportunities.

Identifying New Investment Avenues

Given your current portfolio composition, here's a strategic approach to allocate the additional Rs 10,000 SIP:

Diversification:

Aim to further diversify your portfolio across different fund categories to spread risk and enhance potential returns.
Consider allocating a portion of the new SIP amount to funds with exposure to sectors or themes that complement your existing holdings.
Risk Management:

Assess your risk tolerance and investment horizon to determine the appropriate allocation to different asset classes.
Ensure that the new funds selected align with your risk profile and long-term financial goals.
Research and Selection:

Conduct thorough research or seek advice from a Certified Financial Planner to identify suitable funds that match your investment objectives.
Look for funds with a consistent track record of performance, experienced fund managers, and robust investment processes.
Asset Allocation:

Maintain a balanced asset allocation strategy that aligns with your risk appetite and financial objectives.
Allocate the new SIP amount across various fund categories such as large-cap, mid-cap, small-cap, and thematic funds based on your risk-return preferences.
Regular Monitoring:

Regularly monitor the performance of your portfolio and the individual funds to ensure they remain in line with your investment goals.
Rebalance the portfolio periodically to realign asset allocation and mitigate any deviations from the desired investment strategy.
Conclusion

Expanding your SIP investments by Rs 10,000 per month presents an opportunity to further diversify your portfolio and potentially enhance long-term wealth accumulation. By adopting a disciplined approach to research, selection, and monitoring, you can build a well-rounded investment portfolio that aligns with your financial objectives and risk tolerance.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ramalingam Kalirajan |7451 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 07, 2024

Asked by Anonymous - Apr 12, 2024Hindi

Money

Hello sir, I want to invest between 10-15 k per month in sip for 15 years. Can you please suggest me what funds will be best for me. I selected quant small mid and flexi adity birla sun life PSU , Nippon large cap , Nippon India night small cap 250 index fund Nippon India nifty midcap 150 index .. please suggest

Ans: It's great to hear that you're interested in investing through SIPs for the next 15 years. Here are some recommendations for mutual funds based on your investment preferences:

1. Small & Mid Cap Funds: These funds offer exposure to both small and mid-cap stocks, potentially providing higher returns over the long term. Look for funds that have a consistent track record and are managed by experienced fund managers.
2. Large Cap Funds: Large-cap funds invest in well-established companies with a track record of stable performance. They offer stability and are suitable for conservative investors seeking steady returns over time.
3. PSU Funds: PSU funds focus on investing in Public Sector Undertaking companies. These companies are backed by the government and can offer stability and growth potential. Look for funds with a strong portfolio of PSU stocks.
4. Index Funds: Consider investing in index funds that track specific indices like Nifty Smallcap 250 Index or Nifty Midcap 150 Index. These funds offer diversification and typically have lower expense ratios compared to actively managed funds.
When selecting mutual funds for your SIP investment, it's important to consider factors such as fund performance, expense ratio, fund manager experience, and investment strategy. Conduct thorough research or consult with a financial advisor to make informed decisions based on your risk tolerance and investment goals.

Ramalingam Kalirajan |7451 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 11, 2024

Asked by Anonymous - Apr 21, 2024Hindi

Money

Sir i invest every month 10000 Rs plz suggest which is best sip and any other

Ans: Investing regularly is a commendable habit, and you're doing great dedicating 10,000 Rs every month. As a Certified Financial Planner, I understand the importance of choosing the right investment avenue.

Mutual Funds through Systematic Investment Plans (SIPs) can be a wise choice. They offer diversification, professional management, and the flexibility to invest small amounts regularly. Additionally, they suit investors aiming for long-term wealth creation.

When it comes to SIPs, it's crucial to consider your risk appetite, investment goals, and time horizon. Opting for actively managed funds can be advantageous. Unlike index funds, actively managed funds have the potential to outperform the market, thanks to skilled fund managers who actively select investments.

Moreover, investing through a Certified Financial Planner can offer personalized advice and ongoing support. They can assist in selecting suitable funds, monitoring your portfolio, and making necessary adjustments based on market conditions and your changing financial circumstances.

While direct funds may seem appealing due to lower expense ratios, they lack the guidance and expertise provided by financial professionals. Regular funds, accessed through a Mutual Fund Distributor with a CFP credential, offer personalized service and assistance, ensuring your investments align with your financial goals.

Remember, investing is a journey, and it's essential to stay committed and patient, especially during market fluctuations. Regular review of your portfolio and making adjustments as needed can help you stay on track towards achieving your financial objectives.

Keep up the excellent work with your monthly investments, and may your financial journey be filled with success and prosperity.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Latest Questions

Ramalingam Kalirajan |7451 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jan 06, 2025

Asked by Anonymous - Dec 10, 2024Hindi

Money

If I have 1 cr in my bank account what is the best way to grow it at a minimum of 10 Percentage point per annum

Ans: You have a substantial corpus of Rs. 1 crore. Growing it at 10% per annum is realistic with proper strategies. Let us analyse various options to achieve this growth while managing risks effectively.

Analyse Your Financial Goals
1. Define Your Investment Tenure

Long-term goals allow higher allocation to equity for better returns.
Short-term goals may require low-risk investments with moderate returns.

2. Determine Risk Appetite

High returns often come with higher risks.
Diversify to manage risks without compromising returns.

3. Clarify Financial Objectives

Are you growing wealth, creating income, or saving for specific goals?
Your investment strategy must align with these objectives.

Recommended Investment Avenues
1. Actively Managed Equity Mutual Funds

Equity mutual funds are ideal for long-term wealth creation.
These funds are actively managed by professionals to maximise returns.
A well-diversified equity mutual fund portfolio can achieve 12-15% annual growth.
Avoid direct funds as they lack professional guidance.
Regular funds come with expert advice through Certified Financial Planners.

2. Systematic Investment Plan (SIP) or Systematic Transfer Plan (STP)

Use SIPs or STPs to phase investments and reduce market timing risks.
This strategy ensures disciplined investing and takes advantage of market volatility.

3. Balanced Advantage Funds

These funds balance equity and debt exposure dynamically.
They offer stability during market downturns and growth during uptrends.
Suitable for moderate risk-takers seeking consistent returns.

4. Debt Mutual Funds for Stability

Debt funds provide stability to your portfolio with predictable returns.
Long-term debt funds can generate 7-8% returns while ensuring liquidity.
Ideal for parking funds needed in 3-5 years.

5. Diversified Portfolio with Asset Allocation

Allocate 70% to equity for growth and 30% to debt for stability.
Adjust allocation based on risk tolerance and market conditions.
Periodically review and rebalance the portfolio for optimal performance.

6. Avoid Index Funds and ETFs

Index funds and ETFs have limitations in Indian markets.
Actively managed funds outperform index funds due to market inefficiencies.
Professional management ensures better returns than passive options.

Tax-Efficient Investment Strategies
1. Leverage Long-Term Capital Gains (LTCG) Benefits

LTCG on equity funds up to Rs. 1.25 lakh is tax-free.
Gains beyond Rs. 1.25 lakh are taxed at 12.5%.
Invest for long-term growth to optimise tax liabilities.

2. Debt Fund Taxation

Returns from debt funds are taxed as per your income slab.
However, debt funds provide better post-tax returns than FDs.

3. Systematic Withdrawal Plan (SWP)

SWPs from mutual funds offer tax-efficient periodic income.
Ideal for funding monthly or yearly expenses in a tax-efficient way.

Managing Risks
1. Diversify Across Asset Classes

Spread investments across equity, debt, and hybrid funds.
Diversification reduces portfolio volatility and minimises risk.

2. Emergency Fund Allocation

Maintain Rs. 10-15 lakhs as an emergency fund in liquid mutual funds.
This ensures liquidity for unforeseen expenses without disrupting growth.

3. Monitor and Review Investments

Periodically review your portfolio’s performance.
Adjust investments based on market trends and personal goals.

Importance of Certified Financial Planners
1. Personalised Guidance

A Certified Financial Planner helps you align investments with goals.
They ensure disciplined investing and assist in optimising returns.

2. Holistic Wealth Management

Planners provide end-to-end solutions, from tax planning to estate management.
Their expertise reduces risks and maximises returns.

3. Avoid Common Mistakes

Investing directly or choosing unsuitable funds can harm returns.
Professional advice avoids such pitfalls and enhances portfolio performance.

Final Insights
To achieve a 10% annual return, focus on equity mutual funds for long-term growth. Diversify across asset classes for stability and optimal returns. Use tax-efficient strategies like SWPs and LTCG benefits. Engage a Certified Financial Planner to maximise portfolio performance and align investments with your goals. Consistent monitoring and disciplined investing will ensure you achieve your financial aspirations.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

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I have always struggled with asthma since childhood. With this recent suspected HMPV case in Bengaluru, I want to know if asthmatic patients face a higher risk of severe symptoms from HMPV? Are there any preventive measures to take, beyond our regular inhalers and medications?

Ans: Yes, those with respiratory illness will be at higher risk.
Wear mask and take precautions as during COVID.

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Paediatrician - Answered on Jan 06, 2025

Asked by Anonymous - Jan 06, 2025Hindi

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Hi, I’m genuinely worried about my 5-year-old son’s growing attachment to screens. What started as occasional cartoon time or a few educational videos on a tablet has now turned into a full-blown addiction. Whether it’s TV, a phone, or a tablet, he’s glued to the screen, and the moment we try to take it away, he throws massive tantrums -- screaming, crying, and sometimes even refusing to eat or sleep until he gets it back. Initially, it felt harmless. We thought a little screen time would keep him engaged, especially during meals or long car rides, and honestly, it gave us some breathing room to get things done. But now, it feels like we’ve created a monster. He’s losing interest in toys, outdoor play, and even interacting with other kids. When we suggest activities like drawing, reading, or puzzles, he dismisses them and demands the screen instead. Doctor, how do we approach this problem without triggering endless meltdowns every time we limit his screen time?

Ans: It will be difficult but you have to be firm
Tell him that he has a total time of 1 hour. To be divided as per his choice. But once the time is reached take the screen or remote away. Regardless of the tantrum , the rule should not change. It will take a week till he realises you are serious and won't back down. Take him to a children's park or organise a play time with a friend or a trip to the zoo on holidays. Start reading a book with him.

Ramalingam Kalirajan |7451 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jan 06, 2025

Question by VIVEK - Dec 03, 2024Hindi

Money

sir my age is now 49 years.I have immovable assets worth 5.55 cr,FD worth 59lakhs,my income coming out of FD is 25000 p/m.i am married but no kids.Can i retire after 2 to 3 years .i am the only son.My father has 24 lakhs FD .Also i get rental income o 18000 p/m apart from salary of 2.75 LPA. Kindly suggest as to how to improve my financial situation THanks

Ans: Your financial situation is well-positioned with diverse income sources and assets. Let us evaluate and guide you toward achieving your retirement goal in 2-3 years while improving financial stability.

Current Financial Position
1. Assets

Immovable assets worth Rs. 5.55 crore provide security and stability.
Fixed Deposits worth Rs. 59 lakhs offer liquidity and interest income.

2. Income Sources

FD interest income: Rs. 25,000 per month (Rs. 3 lakh annually).
Rental income: Rs. 18,000 per month (Rs. 2.16 lakh annually).
Salary income: Rs. 2.75 lakh per annum.
Your father’s FD of Rs. 24 lakhs is also a financial backup.

3. Expenses and Liabilities

Understanding your monthly household expenses is crucial.
A detailed expense assessment will help refine the retirement corpus estimation.

Can You Retire in 2-3 Years?
1. Corpus Needed for Retirement

For financial independence, aim for a corpus supporting inflation-adjusted expenses.
Inflation at 6% doubles expenses in approximately 12 years.
Rental income and FD interest will cover part of the expenses post-retirement.

2. Utilising Existing Corpus

Your Rs. 59 lakh FD and Rs. 5.55 crore immovable assets are solid foundations.
However, consider diversifying into mutual funds for better inflation-adjusted growth.

Improving Financial Stability
1. Diversify Investments

Fixed Deposits are safe but offer limited returns, often below inflation.
Gradually move part of the FD corpus into equity mutual funds through SIPs or STPs.
Actively managed equity mutual funds can generate 12-15% returns over the long term.

2. Rental Income Optimisation

Review rental agreements to ensure competitive rental rates.
Explore ways to maximise rental yields, such as property enhancements.

3. Insurance Planning

Ensure adequate health insurance for you and your spouse.
A minimum cover of Rs. 50 lakh for health insurance is advisable.
Consider term insurance if liabilities exist or to secure your spouse’s future.

4. Emergency Fund Allocation

Maintain 6-12 months of expenses in a liquid fund.
This fund ensures liquidity during emergencies without disrupting long-term investments.

Investment Recommendations
1. Actively Managed Mutual Funds

Actively managed funds outperform index funds in the Indian market.
A professional fund manager navigates market volatility effectively.

2. Regular Funds vs. Direct Funds

Invest through a Certified Financial Planner for personalised guidance.
Regular funds come with advisory support, helping to optimise your portfolio.

3. Balanced Portfolio Strategy

Allocate 70% to equity mutual funds for growth and 30% to debt funds for stability.
This mix ensures growth while safeguarding against market fluctuations.

4. Systematic Withdrawal Plan (SWP)

Post-retirement, SWPs from mutual funds provide tax-efficient monthly withdrawals.
Withdraw from debt funds during equity market corrections.

Estate and Succession Planning
1. Inheritance Management

As an only son, you might inherit your father’s Rs. 24 lakh FD.
Plan its utilisation in alignment with your financial goals.

2. Will and Nomination

Create a will to ensure your assets are distributed as per your wishes.
Update nominations for all investments and bank accounts.

Retirement Lifestyle Considerations
1. Inflation-Adjusted Expenses

Current expenses must be projected to account for inflation over 20-30 years.
Regular reviews of your budget will ensure alignment with your financial plan.

2. Post-Retirement Activities

Plan activities like travel, hobbies, or volunteering, and budget accordingly.
These enhance lifestyle satisfaction without compromising financial stability.

Final Insights
You can retire in 2-3 years with careful planning and investment optimisation. Diversify existing FDs into mutual funds to counter inflation and achieve higher returns. Maximise rental income, ensure adequate insurance, and maintain an emergency fund. Regular monitoring and guidance from a Certified Financial Planner will help secure your retirement goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

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Plastic-Aesthetic Surgeon, Emergency Care Consultant - Answered on Jan 06, 2025

Asked by Anonymous - Jan 06, 2025Hindi

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I'm 58 years old and have been experiencing itching on my body. This happens in any season, at any time and in any part of the body. Majority of the time disturbs my sleep at night after day's schedule. As per the advise of our Dr. started with Avil 25, which gave relief initially. Please advise the solution for this problem.

Ans: Please see a dermatologist. May require some tests including Allergy testing

Ramalingam Kalirajan |7451 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jan 06, 2025

Question by niraj - Jan 06, 2025Hindi

Money

my monthly income post taxes is 2.5 lakh.my MF corpus is 1.25 cr .i am 38 and want to create a corpus which could give me monthly withdwal of 2 lakhs monthly in 7 years time.my xirr is sofar 15 %. how much should i save for this calculation.??

Ans: At age 38, your goal to create a sustainable monthly withdrawal of Rs. 2 lakhs is achievable. With a disciplined savings approach, optimal mutual fund strategy, and proper inflation adjustments, you can achieve financial independence.

Understanding Your Goal
1. Corpus Requirement

A monthly withdrawal of Rs. 2 lakhs means Rs. 24 lakhs annually.
A 15% XIRR can help sustain withdrawals for the long term.
You’ll need a corpus of around Rs. 3.5 to Rs. 4 crore in 7 years.

2. Inflation Consideration

Rs. 2 lakhs today will be around Rs. 2.8 lakhs in 7 years at 5% inflation.
Your target corpus must grow to accommodate this rise in expenses.

Current Financial Snapshot
1. Existing MF Corpus

Your existing mutual fund corpus is Rs. 1.25 crore.
At 15% XIRR, this corpus will grow significantly over 7 years.

2. Monthly Income and Savings Potential

Post-tax income is Rs. 2.5 lakhs.
With disciplined savings, you can channel a significant portion into investments.

Estimating Additional Savings
1. Calculating Savings Requirement

Assuming your current corpus grows at 15% annually:
It will contribute a substantial portion towards your target.
Additional savings will bridge the gap to reach Rs. 3.5 crore or more.

2. Suggested Monthly Savings

Save Rs. 60,000 to Rs. 70,000 monthly into mutual funds.
This amount, combined with your current corpus, will help meet the target.

3. Adjusting Over Time

As your income grows, increase your savings gradually.
This ensures that inflation-adjusted expenses are well covered.

Investment Strategy
1. Actively Managed Mutual Funds

Invest in actively managed equity mutual funds for long-term growth.
These funds often outperform index funds, especially in volatile markets.

2. Regular Plans over Direct Plans

Regular plans through a Certified Financial Planner ensure professional guidance.
Direct plans lack advisory support, leading to missed rebalancing opportunities.

3. Balanced Portfolio

Maintain 70-80% in equity funds for growth and 20-30% in debt funds for stability.
This diversification reduces risk and supports consistent growth.

4. Systematic Investment Plan (SIP)

Start a monthly SIP for disciplined savings and rupee cost averaging.
SIPs also align with your cash flow, ensuring regular investments.

Withdrawal Strategy
1. Systematic Withdrawal Plan (SWP)

SWPs ensure regular cash flows during retirement without liquidating the corpus.
Withdraw from debt funds during equity market corrections.

2. Tax-Efficient Withdrawals

Plan withdrawals to minimise long-term capital gains tax.
Withdraw in tranches to stay below taxable thresholds when possible.

Risk Management
1. Emergency Fund

Set aside 6-12 months of expenses in a liquid fund.
This protects your investments during unforeseen circumstances.

2. Health Insurance

Ensure comprehensive health insurance for you and your family.
High coverage avoids unexpected medical costs eroding your corpus.

Final Insights
Your goal of Rs. 2 lakh monthly withdrawal in 7 years is achievable. With Rs. 1.25 crore already invested, disciplined monthly savings of Rs. 60,000 to Rs. 70,000 will bridge the gap. Focus on actively managed mutual funds and follow a well-diversified portfolio for long-term growth. Regular reviews with a Certified Financial Planner will help you stay on track.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

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Plastic-Aesthetic Surgeon, Emergency Care Consultant - Answered on Jan 06, 2025

Asked by Anonymous - Jan 06, 2025Hindi

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Hello Doctor, my mother is 60 years old, and we live in a small town where medical help isn’t immediately available. I’ve always been paranoid about missing critical signs of a stroke or heart attack, especially because she has high blood pressure and cholesterol. Could you please guide me on how to quickly and accurately recognize these warning signs and what immediate steps I should take before professional help arrives?

Ans: The best way is to see your physician at least once in 6 months and get some tests done especially CBC, Lipid Profile, kidney & Liver function tests, electrolytes , ECG and USG of Neck and any other test which the doctor advices. Don't panic. there are many things which are not predictable. We can take precautions and leave rest to fate!

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Relationships Expert, Mind Coach - Answered on Jan 06, 2025

Asked by Anonymous - Jan 06, 2025Hindi

Relationship

I m a in ldr since 1 and half year. We are madly in love with each other. We click like no one and our values for life are same. I love being with her and makes me feel happy. But whenever we talk about marriage which she does i come on backfoot and cant say things that she expects me to say and i make her sad which makes me sad...this has been continuing since very long and whenever she gets sad i feel like a failure in relarionship. J dont know what to do

Ans: First, it’s important to acknowledge and validate your feelings. Your reluctance to engage in these conversations doesn’t mean you love her any less; it might reflect deeper uncertainties, fears, or unresolved issues about the future. Understanding and exploring these feelings can help you approach the topic with more clarity.

It might be helpful to have an open and honest conversation with her about your feelings. Share your inner conflicts and fears without focusing solely on the immediate outcome of marriage. This transparency can foster understanding and help her see that your hesitation isn’t about her, but about your internal process.

On the emotional front, recognize that feeling like a failure is a heavy burden to carry. Relationships thrive on mutual support and understanding, not perfection. Shifting your focus from the pressure of meeting expectations to the joy and love you share can alleviate some of this weight. Remember, it's okay to not have all the answers right now.

Working on these aspects together can turn this challenge into an opportunity for growth and deeper intimacy. Seeking support from a counselor or coach can also provide a safe space to navigate these conversations and emotions, ensuring both of you feel heard and supported.

Ramalingam Kalirajan |7451 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jan 06, 2025

Question by niraj - Jan 06, 2025Hindi

Money

how much MF corpus ,which is giving 15% xirr ,is needed to have retirement monthly expanses of two lakhs.for rest of life. I am 63 now.

Ans: At age 63, planning for Rs. 2 lakhs in monthly expenses requires precision. Your financial strategy must ensure stability, longevity, and tax efficiency. Here's a comprehensive analysis:

Factors to Consider
1. Inflation Impact

Monthly expenses will grow with inflation over the years.
At 5% inflation, Rs. 2 lakhs today may double in 15 years.
Your corpus must cover these increasing costs.

2. Life Expectancy

Assume 85-90 years as life expectancy.
Plan for 25-30 years of sustained withdrawals.

3. Withdrawal Strategy

A 15% XIRR is achievable with the right mutual funds.
Systematic withdrawals allow funds to grow even during retirement.

4. Investment Mix

Balanced portfolios reduce risk while providing growth.
Focus on equity for growth and debt for stability.

Estimating the Corpus Needed
1. Corpus Estimation for Rs. 2 Lakhs/Month

Annual expenses are Rs. 24 lakhs in the first year.
At 15% XIRR, your corpus must sustain withdrawals and inflation.
You may need Rs. 3.5 crore to Rs. 4 crore for Rs. 2 lakhs monthly expenses.

2. Accounting for Inflation

Adjust for higher withdrawals every year.
An initial corpus closer to Rs. 4 crore provides a better safety margin.

Building and Maintaining the Corpus
1. Diversified Mutual Fund Portfolio

Invest in actively managed equity mutual funds for higher returns.
Avoid index funds due to their inability to outperform during market volatility.
Include hybrid funds for balance and debt funds for liquidity.

2. Regular Funds over Direct Funds

Investing through a Certified Financial Planner ensures guidance and regular monitoring.
Regular funds provide professional support and better portfolio adjustments.
Direct funds lack advisory support, which may hinder long-term goals.

3. Strategic Withdrawals

Use systematic withdrawal plans (SWPs) for predictable cash flows.
Withdraw from debt funds first during market downturns.
Let equity investments grow for the long term.

Tax Planning for Mutual Fund Withdrawals
1. Equity Fund Taxation

Long-term capital gains above Rs. 1.25 lakhs are taxed at 12.5%.
Short-term gains attract 20% tax. Plan withdrawals carefully.

2. Debt Fund Taxation

Capital gains are taxed as per your income slab.
Keep withdrawals within the lower tax bracket to optimise savings.

Risk Management and Emergency Corpus
1. Emergency Corpus

Keep Rs. 10-15 lakhs in fixed deposits or liquid funds.
This covers 6-9 months of expenses without impacting investments.

2. Health Insurance

Increase health insurance coverage to avoid medical emergencies impacting your corpus.
Consider policies with comprehensive benefits and high sum assured.

Final Insights
A well-structured corpus of Rs. 3.5 crore to Rs. 4 crore can sustain Rs. 2 lakh monthly expenses. A diversified mutual fund portfolio, strategic withdrawals, and tax-efficient planning are essential. Regular monitoring and professional advice ensure peace of mind during retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

Samraat Jadhav |2146 Answers |Ask -Follow

Stock Market Expert - Answered on Jan 06, 2025

Asked by Anonymous - Nov 13, 2024Hindi

Money

Dear Sir, Now the stock market is down what is the next alternative to increase our investment

Ans: stock market is not for short term, its always for long term, great wealth is made if you stay invested in quality companies over a longer period of time.

See more questions »

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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